Selling a home in Florida that features solar panels requires careful planning and preparation. Solar panels are a significant investment, and showcasing their value effectively can help you maximize your return. Whether you’re a homeowner or a real estate agent, understanding the steps to take is crucial. Here’s a detailed guide to help you navigate the process.
1. Gather Product and Warranty Information
The first step is to contact your solar installer and request detailed information about the system. This includes:
- Solar panel spec sheets
- Warranty documents for the panels, inverters, and mounting systems
- Detailed mounting information
Providing this information to potential buyers builds trust and highlights the longevity and reliability of the system.
2. Perform Planned Maintenance
Ensure your solar system is in peak condition by:
- Cleaning the solar panels to remove dirt and debris
- Checking wire management to ensure no wires are loose or hanging
- Inspecting the roof area for potential issues
- Updating any safety labels that may have faded or been painted over
- Replacing any non-functional microinverters or power optimizers
A well-maintained system not only operates efficiently but also reassures buyers about its condition.
3. Transfer Monitoring Access
Make sure you have access to your solar monitoring system. If your original installer is no longer in business, contact a new installer to take over the administration of the monitoring. This step ensures a seamless transfer of the monitoring account to the buyer.
4. Address and Understand the Financing attached to the Solar System
If your solar system is financed, it’s essential to handle financing details early. Here are key considerations:
Selling a Home with Solar with Loan Financing:
- Contact your finance provider to get the balance owed on the loan.
- Ask if the loan can be transferred to the buyer and what qualifications they would need.
- Obtain information on releasing any UCC-1 filings, which are liens filed against the property to secure the loan. Provide these details to your title agent.
What is a UCC-1? A UCC-1 filing is a legal form that creditors use to secure an interest in a property for a loan. It must be released before the property can be transferred to a new owner.
Selling a Home with Solar with Leased Solar
Contact your leasing company to:
- Determine if a fair market buyout of the lease is possible
- Understand the process for transferring the lease to the buyer
Selling a Home with Solar with PACE Financing
For homes with Property Assessed Clean Energy (PACE) financing:
- Contact the PACE provider to determine the balance owed.
- Understand that this lien is a voluntary property tax assessment and may need to be paid off before or at closing.
5. Evaluate the Energy Savings
Calculate the current market value of the energy savings provided by the system. Your solar installer can help estimate the system’s current production and the monetary value of the energy savings. Utility rates often increase over time, so emphasize how the system’s savings have likely grown since installation.
6. Provide Utility Bills and Marketing Materials
Print the last 12 months of energy bills and leave them in the home during showings. Combine these with a marketing flyer that highlights the current value of the solar system. This helps educate potential buyers and their agents about the benefits of the system.
7. Verify Net Metering Policies
Check with your local utility to confirm the availability of net metering. For example, Orlando Utilities Commission (OUC) plans to phase out net metering for new buyers after June 30, 2025. If net metering isn’t transferable, the value of the solar system could decrease significantly.
8. Assist with Net Metering Setup
If net metering is still available, provide the buyer with your installer’s contact information to facilitate setting up their utility account. Many utilities only send a single email notification about net metering, so proactive assistance is essential.
All This Effort Gets You the Value You Deserve – But Not Too Much.
Remember, selling a house with solar is not necessarily about making a profit on your solar, it’s about ensuring that the next buyer takes over the investment at a fair price. If you’ve enjoyed the benefits of the solar for 2 years or more, you should consider really only the remaining value left on your loan or how much value you’ve received. If you’ve taken the tax credit and saved money on your energy bills you probably should not be trying to recover the total investment of your solar plus additional profits since you’ve received back as much of 30% up front. Over valuing your solar investment can slow or make your real estate transaction more complicated than it needs to be.
There are several studies have examined the impact of solar panel installations on home sale values, highlighting the financial benefits for homeowners. Use these studies to show that the new buyer is getting a great deal on the investment you made in the home – with none of the effort.
1. **SolarReviews 2024 Study**: This analysis found that homes equipped with solar panels sold for approximately 6.8% more than comparable homes without solar installations. With the median home value around $417,000, this equates to an additional $28,000 in value.
2. **Zillow 2019 Analysis**: Zillow reported that homes with solar energy systems sold for 4.1% more on average than comparable homes without solar power. For a median-valued home, this translated to an additional $9,274.
3. **Lawrence Berkeley National Laboratory (LBNL) Study**: This research indicated that each watt of solar added an average of $4 to a home’s value in California and $3 per watt elsewhere. For a typical 5-kilowatt system, this resulted in an average increase of $20,000 in California and $15,000 in other states.
4. **National Renewable Energy Laboratory (NREL) Findings**: NREL reported that homes with solar panels not only sold for more but also 20% faster than comparable homes without solar installations.
5. **Porch.com Analysis**: This study found that homes with solar panels tended to list 56% above the average home price, with solar-paneled homes averaging around $680,000—about 48% more than the average home in a given area.
These studies collectively demonstrate that solar panel installations can enhance property values and appeal to potential buyers, making them a worthwhile consideration for homeowners looking to sell.
Realtors and Sellers Can Partner with Vinyasun for a Seamless Process
Selling a home with solar panels in Florida doesn’t have to be complicated. Vinyasun offers home sale assistance packages that include:
- Full-service inspections
- Planned and unplanned maintenance
- Production estimates
- Marketing Flyer Creation
These services ensure sellers can showcase their investment’s value and secure the best return. Statistics show that homes with solar panels sell for more, but education is key. Potential buyers often need to understand the system’s benefits to appreciate its value fully.
By following these steps and partnering with professionals, you can ensure a smooth and profitable home sale.
